Thursday, October 27, 2005

New Home Sales Below Estimates

New Home Sales data is in.

New Residential Sales

The New Home Sales indicator is typically viewed as a more real time indicator of the housing market, due to the fact that new sales are logged when contracts are signed, unlike existing home sales, which tends to lag a few months (looking back in time).

New Home Sales were in at 1222K, under analysts estimates of 1250K. Also interesting is the fact that the September 2005 numbers were approximately 0.1% lower than September 2004.

Some other interesting tidbits, the median home price fell 5.7% this month, to $215,700, and inventory of new homes is at an all time high of 493,000 units. With prices falling, and inventory at an all time high, it's hard to see this boom continuing much longer.

Caveat Emptor,
Grim

2 Comments:

Blogger grim said...

"New home sales rose 2.1% in September, but from a downwardly-revised August figure (August was revised down 3.2%, so the new September sales rate of 1.22 million is below the unrevised August figure). Furthermore, the inventory/sales ratio was revised up to 4.9 months, the highest level since 1996. We have found this to be a useful leading indicator of the pace of residential investment, so this implies that some slowing lies ahead." - Bill Dudley @ Goldman Sachs

10/27/2005 11:00:00 AM  
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